India, on track to becoming the world’s largest streaming market

The video streaming market in India is experiencing unprecedented growth. In 2023, India had 1.037 trillion total on-demand music streams, second only to the USA, which had 1.454 trillion streams. Notably, India witnessed the highest year-on-year increase in total annual on-demand music streams, with about 463.7 billion more plays compared to its 2022 figures, surpassing the US’s increase of 184.0 billion.

A PwC report supports this. “India’s fragmented OTT market — which will be the world’s fastest-growing in the next five years, with total revenue hitting US$4.3 billion in 2028 — is ripe for consolidation, with around 101 million paid subscribers and 58 OTT platforms, about half of which are regional players operating in local languages.”

Global advertising revenue will hit $1 trillion in 2026 as streaming services look to consolidation and live sports to drive growth.

Among the larger markets showing rapid growth, the clear stand-outs apart from India are Indonesia and China, at a 7.1 percent CAGR. By 2028, China’s advertising and consumer spending revenues ($362.5 billion) will be less than half of those in the US ($808.4 billion). Each of these territories has its distinctive market dynamics. China’s continued strong growth means it’s steadily closing the US gap in market size. However, tight government regulation can make investing there more complex than in other territories.

Indian market dynamics
Firstly, the proliferation of high-speed internet connectivity has played a pivotal role in expanding the user base for video streaming services. As more households gain access to reliable and fast internet, the barrier to entry for streaming platforms diminishes, fostering a larger and more diverse audience. Furthermore, the widespread adoption of smartphones and smart devices has transformed how consumers access and consume content. The ubiquity of these devices has enabled users to stream videos on the go, contributing to the surge in demand for streaming services. In addition, the accelerated shift towards digital entertainment, which prompted individuals to turn to streaming platforms for entertainment and information, is also augmenting the market growth.

Moreover, the intensification of original content production by streaming providers has become a significant driver. Exclusive and high-quality content attracts subscribers, creating a competitive edge in the market. The rise of streaming platforms as major content producers has reshaped the dynamics of the entertainment industry, with consumers increasingly drawn to the convenience and diversity offered by on-demand streaming services. Collectively, these interconnected factors continue to propel the regional video streaming market forward, shaping the future of the digital entertainment landscape.

Statista’s data is slightly different from that of PwC.

• Revenue in India’s Video Streaming (SVoD) market is forecasted to reach US$2.02bn in 2024.
• The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 9.77%, leading to a projected market volume of US$3.22bn by 2029.
• When compared globally, the United States will generate the highest revenue (US$43,970.00m in 2024).
• The average revenue per user (ARPU) in India’s video streaming market is estimated to be US$22.68 in 2024.
• The video streaming market is expected to reach 115.7 million users by 2029.
• User penetration is projected to be 6.2% in 2024 and is forecasted to reach 7.7% by 2029.
• India’s video streaming market is booming, and local content providers like Hotstar and Eros are now dominating the streaming industry.

The Indian streaming market
(in USD billion)

India is relentless in not letting go. The proposed Walt Disney -Reliance Industries merger is a big one. Both companies are hopeful of completing the merger by October. They have been assigned time till February 2026 to finish the process.

They are looking into closing down certain channels to secure the nod from the Competition Commission of India for their proposed merger. Both companies have proposed shutting Star India and Viacom18’s Hindi and regional channels to gain approval from the regulator. They also intend to shut down operations in channels in the Kannada, Bangla, and Marathi language markets. The combined entity of Star and Viacom18 will control more than 40 percent of the Hindi, GEC, Marathi, Kannada, and Bangla markets. This will make the company dominate the sports broadcasting segment, controlling all the key cricket and non-cricket rights. The CCI considers any firm with a more than 40 percent share in the market as dominant in the segment.

OTT viewership in India is at an all-time high now. High-speed internet and increased internet penetration suggest that more and more people will consume OTT video content in the coming days. With RJio ready to disrupt the market again, having announced free Wi-Fi installation for a three-month package under its Freedom Offer, OTT platforms can only go north!
BCS Bureau